Demurrage, detention and storage are charges associated with containers or cargo remaining in a terminal or with customers longer than agreed. The terms are often used differently across carriers, terminals and countries, so the governing tariff, service contract and local rules should always be checked.
The Practical Difference
| Charge | Common meaning | Typical import period |
|---|---|---|
| Demurrage | Container/equipment remaining at the terminal beyond agreed free time | After discharge/availability until full container gates out |
| Detention | Carrier equipment kept outside the terminal beyond free time | From full-container gate-out until empty return |
| Storage | Use of terminal/depot space beyond the applicable free-storage period | While cargo/container occupies terminal space |
Some providers combine demurrage and detention into one free-time period, and some separate terminal storage from carrier equipment charges. The invoice wording alone should not be assumed to be universal.
What Is Free Time?
Free time is the agreed period during which the relevant demurrage/detention charge does not accrue. The number of days, calendar-day rules, start event, weekends/holidays and charge tiers can differ by carrier, terminal, country and contract.
Worked Import Example
Assume a container has five free terminal days. It becomes available on 1 September and is gated out on 9 September. If the applicable tariff counts three chargeable days after free time at BHD 12 per day, terminal/equipment exposure would be 3 × 12 = BHD 36. If the empty is then returned late, detention may accrue separately.
Why Charges Happen
- Late customs clearance or missing documents
- Customer delivery appointment not available
- Payment or original-document release delays
- Port congestion or equipment/transport constraints
- Empty-container return slots unavailable
- Internal ownership of deadlines unclear
Controls to Reduce Exposure
- Record ETA, discharge/availability and free-time expiry for each shipment.
- Complete customs documents before arrival where possible.
- Track bill-of-lading release, duty/payment and delivery appointments separately.
- Book transport and empty-return slots early.
- Escalate shipments approaching free-time expiry.
- Validate invoices against the actual tariff/contract and event dates.
Related: Import Customs Clearance, Telex Release and Freight Charges.
Interview Question
Question: What is the operational difference between demurrage and detention?
Answer: In the common container-shipping usage, demurrage relates to time beyond free time while the container is at the terminal, while detention relates to time the carrier’s equipment is kept outside the terminal. Local terminology can differ, so the tariff should be checked.
References
- U.S. Federal Maritime Commission — detention, demurrage and free-time guidance.
- Carrier/local tariffs — applicable free-time periods and rates.
Download the Practical Workbook
Use the SCMANA Demurrage, Detention & Storage Tracker to calculate free-time expiry, chargeable days and estimated exposure by shipment.
Comments 1